Supplier Decarbonization Program

Proposal

Aligned with Science-Based Targets initiative (SBTi) and 1.5°C Climate Goal
1. Executive Summary
This proposal outlines a tiered decarbonization program for suppliers, structured into four
levels based on sourcing share and decarbonization readiness. The framework is aligned
with international sustainability standards, Science Based Targets initiative (SBTi), and the
1.5°C climate goal. It provides a roadmap for suppliers across Categories A, B, and C to
adopt decarbonization practices in a progressive manner.

Even though this proposal highlights the decarbonization effort, in-depth water reduction
methodologies leading to ZDL can be designed as a special project

2. Supplier Category:
In order to effectively manage sourcing, reduce environmental footprint, and achieve global
sustainability commitments, it is essential to categorize suppliers based on their sourcing
contribution and relative impact. We propose the following categorization framework for
your supply chain:

Category A – Strategic Core Suppliers

 Contribute approximately 60–70% of total sourcing volume.

 Represent the largest share of product-related environmental and social
footprint, including Scope 3 GHG emissions.
 Require priority engagement for decarbonization programs, energy efficiency,
renewable energy transition, and chemical management.
 Long-term collaboration with these suppliers will yield the highest impact in
achieving corporate sustainability targets (e.g., SBTi, GHG Protocol, UN SDGs).

Category B – Key Supporting Suppliers

 Account for 20–25% of sourcing volume.

 While smaller in scale than Category A, they still represent a significant portion of
the overall footprint.
 Engagement strategy should include capacity building, compliance monitoring,
and phased integration into advanced sustainability initiatives.
 These suppliers play a critical supporting role in brand resilience and target
achievement.

Category C – Fringe and Tactical Suppliers

 Represent 5–10% of sourcing volume.

 Although their direct footprint is comparatively lower, they are essential for niche
products, seasonal fulfillment, and flexibility in sourcing.
 From a climate perspective, inclusion of Category C suppliers ensures
completeness and credibility in Scope 3 reporting under the GHG Protocol and
SBTi supplier engagement criteria.
  Engagement should focus on minimum compliance, data transparency, and
selective participation in broader programs.

3. Program Category
We have created a customized supplier engagement program that aligns fully with
international frameworks like the Paris Agreement, SBTi, and the GHG Protocol. For brands
without existing decarbonization efforts, we offer a package that includes baseline
footprint mapping, supplier data tracking, footprint reduction strategies, and preparation
for future alignment.

For suppliers already engaged in any previous decarbonization program or in-depth energy
audit aligned with the 1.5°C climate goal, we offer a light capacity-building, verification,
and SBTi onboarding program to ensure consistency with both brand commitments and
global climate targets.

For Category C suppliers, where business share and influence are limited, we deliver a
lightweight engagement model focused on footprint tracking and compliance to ensure
complete Scope 3 coverage and credible climate reporting throughout the supply chain.
Level 4 Program

(Only for Category A suppliers not yet engaged in a decarbonization program or an audit
that is aligned with the 1.5 degree climate goal)

Duration: 1 Year

This program establishes a structured entry point for Category A suppliers beginning their
decarbonization and water reduction journey. It equips them with essential knowledge,
tools, and reporting capabilities to align with brand and global climate targets.

Key Components

 Capacity Building: Climate Action and SBTi Target-Setting Training (including Scope
3 emissions).
 Diagnostics: Baseline In-Depth Energy & Water Audit and Scope 1, 2 & 3 Emission
Report.
 Target Alignment: GHG & Water reduction goals developed in line with brand
requirements.
  Support & Assurance: Two onsite follow-ups, onboarding into SBTi, and a final
performance assessment.
 Ongoing Monitoring: Transparent reporting through RTIS for accountability and
continuous improvement.

Level 3 Program

(Only for Category B suppliers without an existing decarbonization program or energy audit
that is aligned with the 1.5 degree climate goal)

Duration: 6 Months

This program is designed to accelerate Category B suppliers who are not yet engaged in any
decarbonization program. It offers a structured, lite decarbonization pathway with focused
training, diagnostics, and reporting support. The aim is to establish a credible foundation
for SBTi commitment and ensure alignment with brand climate goals.

Key Components

 Capacity Building: Targeted training on SBTi and Scope 3 emissions to strengthen

supplier knowledge.
 Diagnostics: Baseline In-Depth Energy & Water Audit and comprehensive Scope 1, 2
& 3 Emission Report.
 Target Alignment: Development of brand-aligned GHG & Water reduction goals.
 Onboarding & Support: Supplier onboarding into SBTi with dedicated guidance.
 Ongoing Monitoring: Performance tracking and transparent reporting through RTIS.

Level 2 Program

(Designed for Category A & B suppliers with an existing decarbonization report aligned with
the 1.5°C climate goal)

Duration: 6 Months

This program builds on suppliers who already have an energy audit or decarbonization
report in place. It focuses on refining emission reporting, aligning GHG & Water targets with
brand requirements, and providing structured onboarding into SBTi, while ensuring
continuous monitoring through RTIS. Optional training components are available for
suppliers requiring further capacity building.

Key Components

 Capacity Building (Optional): Climate Action Training and SBTi Target-Setting

workshops.
 Diagnostics: Validation of existing reports and Scope 1, 2 & 3 Emission Report.
  Target Alignment: GHG & Water reduction goals reviewed and aligned with brand
sustainability requirements.
 Onboarding & Support: Supplier onboarding into SBTi with guided technical
assistance.
 Ongoing Monitoring: Transparent reporting and progress tracking through RTIS.

Level 1 Program

(Designed for Category C / fringe suppliers of the fashion brand – a lightweight entry
program)

Duration: 3 Months

This program provides a simplified, lightweight pathway for fringe suppliers to begin
engaging with climate action requirements. It focuses on essential data collection, online
training, and basic verification to create a minimum foundation for emission reporting and
alignment with brand sustainability goals.

Key Components

 Capacity Building: Online training on SBTi Target-Setting and Scope 3 Emission

Calculation.
 Data Collection: Baseline and pre-assessment data gathering.
 Verification: Desktop verification of supplier information.
 Diagnostics: Scope 1, 2 & 3 Emission Report.
 Target Alignment: GHG & Water target setting aligned with brand requirements.
 Monitoring: Performance tracking through RTIS.

Special Program

(Designed for Category A & B suppliers – brand-specific requirements or piloting projects)

Duration: Project-based (typically 6–12 Months, depending on scope)

This program focuses on implementing brand-prioritized sustainability interventions with

key suppliers. Unlike general decarbonization pathways, it is customized to address specific
environmental goals or innovative pilot projects. It enables brands to test, scale, and
showcase impactful solutions across the supply chain.

Key Components

 Capacity Building: Technical training and awareness workshops tailored to the

selected intervention (e.g., renewable energy, electrification).
 Diagnostics: Feasibility studies, baseline assessment, and site-level energy/resource
audit.
 Implementation Support: Guided deployment of pilot solutions such as:
 o Rainwater harvesting systems
o Waste heat recovery equipment
o Renewable energy integration (solar, wind, biomass)
o Electrification of thermal/production processes
o High-efficiency machinery installation
o ZLD Implementation
o Metering & Monitoring
 Verification: On-site inspection and performance validation of installed systems.
 Target Alignment: Ensure pilot project outcomes align with brand sustainability
roadmap, emissions, and water reduction targets.
 Monitoring: Performance tracking through RTIS or customized dashboards,
including impact reporting for HQ visibility.
 Scaling & Replication: Lessons learned from pilots are evaluated for scaling across
broader supplier networks

4. Program Summary

Strategic Value for

Level Supplier Category Duration Depth of Engagement Man-Day
Brand
Brings fringe suppliers
Lightweight, online
Category C / Fringe into brand sustainability
Level 1 3 Months training + basic data 11.5
suppliers scope with minimal cost
collection
and effort
Category A & B with
existing Validation of existing Ensures consistency,
decarbonization work, alignment with avoids duplication,
Level 2 6 Months 17-19
program & audit brand goals & SBTi strengthens reliability of
report (aligned with Onboarding reported data
1.5°C)
Level 3 Category B without 6 Months Structured entry Accelerates mid-tier 24-27
existing program with baseline suppliers, building
decarbonization audit, training, and readiness and credibility
 Strategic Value for
Level Supplier Category Duration Depth of Engagement Man-Day
Brand
program or audit
for supply chain
report (aligned with SBTi onboarding
compliance
1.5°C)
Secures major suppliers
Full program: training, (65–70% of sourcing)
Category A suppliers
audits, reporting, SBTi into brand-aligned
Level 4 not yet engaged in 1 Year 32-37
onboarding, onsite decarbonization
decarbonization
follow-ups, monitoring pathway, highest impact
on targets
Customized projects Enables piloting of
such as rainwater innovative sustainability
Category A & B
harvesting, waste heat solutions; creates case
suppliers (brand-
recovery, renewable studies for scaling; aligns
Special specific pilots or Project
energy integration, brand with high- TBD
Program requirements) Based
electrification, or high- visibility climate
efficiency machinery leadership initiatives

5. Assignment Framework

• Category A suppliers without decarbonization program → Level 4

• Category B suppliers without decarbonization program → Level 3

• Category A & B suppliers with decarbonization program → Level 2

• Category C suppliers (minor sourcing share, no program) → Level 1

• Category A&B suppliers (Customized or Pilot Project) → Special Program

6. Conclusion & Recommendations

By implementing this tiered framework, the fashion brand ensures all suppliers are engaged
in climate action in alignment with the 1.5°C climate goal. The program is scalable,
resource-efficient, and transparent, enabling suppliers at different readiness levels to
participate in the brand's sustainability journey.